Tuesday 11 November 2008

Earnings in Asia to fall 20% next year: Merril Lynch

Mark Matthews, Chief Asia Strategist, Merrill Lynch, expects earnings across Asia to fall by at least 20% next year year-on-year. Consensus forecast a 10% earnings growth for Asia next year. He, however, said it wouldn’t have an adverse effect on markets. “The markets are virtual, whereas the economy is real. The markets have already discounted this [earnings]. I don’t mind the fact that analysts are still far too high because the market is much smarter and has already efficiently discounted the recession that we are going to experience next year.”

Source: Moneycontrol

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